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200 Moving Average Strategies. Part -3

200 Moving Average Strategies. (Part -3)

Friends……….

 

A lot of thanks for visit earnmoneyfx.com

As a series part strategy of 200 Moving Average Strategy, earnmoneyfx.com research team suggests you to follow various type entry exit strategies of 200 Simple Moving Average as below:

  1. Support & Resistance
  2. 200 MA Bounce
  3. Trend line
  4. Ascending Triangle
  5. Descending Triangle
  6. Flag Pattern
  7. Channel
  8. Candlesticks Pattern
  9. Golden Cross
  10. Death Cross
  11. Short term & Mid term moving average cross
  12. Multi time frame analysis.

Please note all above strategies are demo tested by earnmoneyfx.com research team which success ratio was sixty to seventy five percent. If you follow our direction as accurately when entry and exit, we sure that your trading result must better day by day.

 

200 Moving Average Strategy (Part -1) we have discussed about structure of 200 Moving Average, types of 200 Moving Average and 200 Moving Average Support and Resistance Entry Exit Strategy in details.

 

https://www.earnmoneyfx.com/the-200-day-moving-average-strategy-guide/

Above link is for your ready references.

200 Moving Average Strategy (Part -2) we have discussed about 200 Moving Average Bounce Entry Exit Strategy in details.

If you missed all or any one, Earnest request you to visit 200 Moving Average Strategy (Part -1) and 200 Moving Average Strategy (Part -2) in earnmoneyfx.com

These article earnmoneyfx.com research teams try to cover another strategy as below.

*** How to Entry and Exit Trend line and 200 Moving Average ***     

 

Let’s explore ………

 

How to Entry and Exit Trend line and 200 Moving Average:

 

Before explore how to Entry and Exit Trend line and 200 Moving Average at first we learn to know what is Trend Line and How to draw trend line properly.

What is Trend Line: In the world of FOREX, STOCK and COMMDITIES market, There is a most common sentence we heard,

       TREND IS FRIEND

 

It is absolutely right. FOREX, STOCK and COMMDITIES market are always either uptrend / downtrend or sideways.

It will be easy to earn from FOREX, STOCK and COMMDITIES market, if you identify trend properly. Whatever its uptrend or downtrend.

TREND LINE is one of the major tools to identify trend.

As per investopedia, Trend line is a line which draw over pivot highs or under pivot lows which shows prevailing direction of price. That means,

When price is uptrend, trend line draw under pivot low.

When price is downtrend, trend line draw over pivot high.

For your information,

 

 

Few trader connect trend line with swing low when draw uptrend trend line.

Few trader connect trend line with swing high when draw downtrend trend line.

Few trader want to avoid only connect trend line with swing low, they try to connect most of candlesticks low when draw uptrend trend line.

Few trader want to avoid only connect trend line with swing high, they try to connect most of candlesticks high when draw downtrend trend line.

Few trader avoid Japanese candlesticks, they only use line chart when draw trend line.

 

Are u confused!!

I am sure you are confused. You want to know which way is best for draw trend line.

There is nothing to worry.

earnmoneyfx.com research team suggest you that you can draw trend line any way but you have to sure that you connect two or more swing point.

Here two or more swing point connection is very very important. Two or more candlesticks connect is not important. You can connect more candlesticks for strong trend line.

Image 1: 200 Moving Average and Trend Line Breakout Entry Exit Strategy (BUY)

 

Image point number – 1, We see strong down trend of price with few swings. As per trend line rules, we draw trend line here with connect two swing high.

Image point number – 2, Candlesticks break out 200 Moving Average and Trend line same time. It’s our entry candle.

 

Image point number – 3, Aggressive or conservative trader put their BUY STOP order 2 pips above of 200 Moving Average and Trend line break out candlesticks.

Image point number – 4, After hit BUY STOP order aggressive or conservative trader place STOP LOSS 2 pips below of 200 Moving Average and trend line breakout candlesticks. Few traders place STOP LOSS 2 pips below of 200 Moving Average.

Image point number – 5, Conservative or aggressive trader place their take profit level on near swing high or 1 : 2 or 1 : 3 risk reward ratio.

 

Image 2: 200 Moving Average and Trend Line Break Down Entry Exit Strategy (SELL)

Image point number – 1, We see strong uptrend of price with few swings. As per trend line rules, we draw trend line here with connect two more swing low.

Image point number – 2, Candlesticks break down trend line. But we do not entry here. Here our main focus is 200 Moving Average. We never sale above 200 Moving Average. So we have to wait for candlesticks break down 200 Moving Average.

Image point number – 3, Candlesticks break down 200 Moving Average. It’s our entry candle.

Image point number – 4, Aggressive or conservative trader put their SELL STOP order 2 pips below of 200 Moving Average break down candlesticks.

Image point number – 5, After hit SELL STOP order aggressive or conservative trader place STOP LOSS 2 pips above of 200 Moving Average break down candlesticks. Few traders place STOP LOSS 2 pips above of trend line break down candlesticks.

Image point number – 6, Conservative or aggressive trader place their take profit level on near swing low or 1 : 2 or 1 : 3 risk reward ratio.

 

Image 3: 200 Moving Average and Trend Line Breakout Swing Entry Exit Strategy (BUY)

 

 

Image point number – 1, Candlesticks breakout 200 Moving Average. It’s not our entry candle. We have to wait for breakout trend line.

Image point number – 2, As per trend line rules, we draw trend line here with connect two more candlesticks high.

Image point number – 3, Aggressive or conservative trader put their BUY STOP order 2 pips above of trend line breakout candlesticks.

Image point number – 4, After hit BUY STOP order aggressive or conservative trader place STOP LOSS 2 pips below of trend line breakout candlesticks.

Image point number – 5, Conservative or aggressive trader place their take profit level on near swing high or 1 : 2 or 1 : 3 risk reward ratio.

Image point number – 6, 7, 8 and 9, More and more entry and exit scope as per rules.

 

 

Image 4: 200 Moving Average and Trend Line Break Down Swing Entry Exit Strategy (SELL)

Image point number – 1, Candlesticks break down 200 Moving Average. It’s not our entry candle. We have to wait for break down trend line.

Image point number – 2, As per trend line rules, we draw trend line here with connect two more candlesticks low.

Image point number – 3, Aggressive or conservative trader put their SELL STOP order 2 pips below of trend line break down candlesticks.

Image point number – 4, After hit SELL STOP order aggressive or conservative trader place STOP LOSS 2 pips above of trend line break down candlesticks.

Image point number – 5, Conservative or aggressive trader place their take profit level on near swing low or 1 : 2 or 1 : 3 risk reward ratio.

Image point number – 6, 7 and 8, More and more entry and exit scope as per rules.

 

                  ——- Thanks for give your valuable time to read this article ——–

 

(To be continued)

 

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